Subsidized housing cuts bring bad news amid
holiday season
The Associated Press
24 December 2004
CHEYENNE - Low-income families have been getting bad news as the U.S. Department of Housing and Urban Development changes how subsidized housing programs are funded.
Because of the changes, the Cheyenne Housing Authority faces a $40,000 deficit and has had to revoke 207 housing vouchers that were about to go into effect.
Those who had been planning to get help include Tisha Dean, a waitress who said her 3-year-old son had been looking forward to moving into a new bedroom. On Thursday, Dean got a letter saying her voucher for subsidized housing had been repealed and that she would be placed back on a waiting list.
"Now what I am going to do?" she wondered.
Six families were scheduled to have their rental units inspected Wednesday before completing the final paperwork and beginning to get a subsidy in
January. That same day, Cheyenne Housing Authority officials had to tell them they no longer had vouchers and would be placed back on a waiting list.
"This is the most cold-hearted thing we've ever had to do," said Michael Stanfield, the executive director of the Cheyenne Housing Authority. "They obviously thought they had rent subsidy. Now, 'Merry Christmas, you don't."'
Stanfield said the change resulted from the federal appropriations bill passed Nov. 20 that changed how HUD funds programs like the Cheyenne Housing Authority. HUD now funds such programs by averaging each program's cost over three months during the previous year, applying an inflationary rate and then funding the next year at that level.
Unfortunately for the Cheyenne Housing Authority, Stanfield said, the three months chosen -- June, July and August -- are the slowest months of the year for low-income housing needs in Cheyenne. And to make matters worse, HUD did not apply the inflationary rate.
"I am going ahead and appealing the funding notification even though HUD has said I'm not able to appeal," Stanfield said.
Under the previous funding level, the Cheyenne Housing Authority had been able to authorize 1,531 vouchers for subsidies. But even if the Cheyenne Housing Authority wins its appeal, it will only be able to support 1,424 households because of the average funding levels from the three summer months.